@article{MorrisonPaul:91749,
      recid = {91749},
      author = {Morrison Paul, Catherine J. and Sauer, Johannes},
      title = {Distinguishing Different Industry Technologies and  Localized Technical Change},
      address = {2010-03-29},
      number = {352-2016-18033},
      pages = {15},
      month = {Mar},
      year = {2010},
      abstract = {This contribution is based on the notion that different  technologies are present in an industry. These different  technologies result in differential “drivers” of economic  performance depending on the kind of technology used by the  individual firm. In a first step different technologies are  empirically distinguished. Subsequently, the associated  production patterns are approximated and the respective  change over time is estimated. A latent class  modelling
approach is used to distinguish different  technologies for a representative sample of E.U. dairy  producers as an industry
exhibiting significant structural  changes and differences in production systems in the past  decades. The production technology is modelled and  evaluated by using the flexible functional form of a  transformation function and measures of first- and  second-order elasticities. We find that overall (average)  measures do not well reflect individual firms’ production  patterns if the technology of an industry is heterogeneous.  If there is more than one type of production frontier  embodied in the data, it should be recognized that  different firms may exhibit very different output or input  intensities and changes associated with different  production systems. In particular, in the context of  localized technical change, firms with different  technologies can be expected to show different technical  change patterns, both in terms of overall magnitudes and  associated relative output and input mix changes. Assuming  a homogenous technology would result in inefficient policy  recommendations leading to suboptimal industry outcomes.},
      url = {http://ageconsearch.umn.edu/record/91749},
      doi = {https://doi.org/10.22004/ag.econ.91749},
}